Microcredit and Women’s Financial Empowerment: Insights from Brazilian Crediamigo Microcredit Program

Abstract

Purpose: The purpose of this study is to estimate the impact of Crediamigo Microcredit Program in Brazil on the financial situation of its recipients and investigate potential gender differences.

Study design: We use secondary data from the socioeconomic registry of Crediamigo, considering the active clients of the Program until 2021. Our identification strategy consists of using the Difference-in-Differences method.

Findings: The findings indicate that sustained participation in the program results in an average increase in operating profit, non-operating revenue, and payment capacity. Despite less favorable initial conditions and a lower average loan value, women experience significantly greater impacts.

Contributions: The main contribution focuses on using unique characteristics of Crediamigo to understand gender differences in financial performance.

Implications: By showcasing the benefits for female entrepreneurs, the findings offer valuable insights for more targeted financial initiatives and policies that bridge gender gaps and better serve female entrepreneurs.

Keywords

microcredit microenterprises female empowerment Brazil G21 J16 N26

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